UBS Group AG has reported a billion-euro profit for the third quarter of 2024, demonstrating resilience in its financial performance.
The integration of Credit Suisse is progressing, with UBS actively selling off parts of the former crisis bank.
Despite the positive earnings report, UBS shares experienced volatility, initially rising before closing down 3.4 percent at 27.47 francs.
In the months from July to September, UBS generated approximately 1.4 billion US dollars (1.3 billion euros) in profit, a stark contrast to the loss of 715 million dollars reported in the same period last year. The bank's pre-tax profit for the quarter was reported at 1.9 billion dollars, with adjusted figures excluding integration costs reaching nearly 2.4 billion dollars.
UBS's operating income increased by five percent year-on-year, totaling 12.3 billion dollars. The bank reported particularly strong activity from private and institutional clients, especially in the Americas and Asia-Pacific regions.
In wealth management, UBS saw a nearly 20 percent increase in adjusted transaction-based income compared to the previous year. The Investment Bank also performed well, with income from trading activities rising by over 30 percent.
Additionally, the Global Banking division reported a 21 percent increase in adjusted income.
UBS has been proactive in managing costs during the integration of Credit Suisse, having reduced risk-weighted assets (RWA) in its settlement unit. The bank has targeted savings of around 13 billion dollars, with approximately 7.5 billion achieved by the end of 2024.
UBS management remains cautious about the broader economic environment, citing ongoing geopolitical conflicts and uncertainty surrounding the upcoming US elections. The bank's management has indicated that it will maintain its plans for dividends and share buybacks, although the latter will depend on the outcome of discussions regarding higher capital requirements for UBS.
UBS's ability to attract nearly 25 billion dollars in net new money from investors in wealth management underscores its strong market position. As of the end of September, the bank managed assets totaling 6.2 trillion dollars.